Govt will manage to fund priorities: Swan

Treasurer Wayne Swan says the government will continue to find room in the budget to pay for Labor's policy priorities.

Mr Swan was quizzed during question time in parliament on Wednesday by shadow treasurer Joe Hockey about reports several members of the Labor caucus had questioned how the government was going to pay for its big ticket promises.

The treasurer said the Labor caucus always had good conversations about policy.

"I think everybody in our caucus is absolutely proud about the fact that Standard & Poor's have re-affirmed our triple-A rating ... with stable outlook," he told the house.

"There are only seven countries that have got that rating."

When asked by Mr Hockey to respond directly to the question, Mr Swan said the triple-A rating went to the core of the government's fiscal discipline.

He said the government had found room in the budget for earlier priorities, such as paid parental leave and pension increases, by making savings.

Related Articles

"We have done all of that in the face of very large revenue write downs to the tune of $150 billion," Mr Swan said.

"We will continue to adhere to our fiscal rules as we make room for Labor priorities."

Shadow finance minister Andrew Robb asked Prime Minister Julia Gillard if she stands by the May budget forecast for a $34 billion increase in tax revenues in 2012/13, when commodity prices have fallen.

Ms Gillard said the budget took into account that commodity prices had peaked in 2011.

"We also understood that we were going to see increasing export volumes," she said.

She said the government's "properly costed policies" will be laid out in the mid-year budget review, next year's budget and the pre-election fiscal and economic outlook.

"We will make sure the Australian people get all the information they need," she said.

"If we are going to have this fiscal debate then the member should come to the despatch box and should say he is prepared to get the opposition's policies properly costed, otherwise why would anybody take him seriously?"